2017 North American SMB Mobile Workforce Applications Customer Value Leadership Award

Transcription

1 2017 North American SMB Mobile Workforce Applications Customer Value Leadership Award

2 Contents Background and Company Performance... 3 Industry Challenges... 3 Customer Impact and Business Impact... 4 Conclusion... 7 Significance of Customer Value Leadership... 8 Understanding Customer Value Leadership... 8 Key Benchmarking Criteria... 9 Best Practices Award Analysis for ClickSoftware... 9 Decision Support Scorecard... 9 Customer Impact Business Impact Decision Support Matrix Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices The Intersection between 360-Degree Research and Best Practices Awards Research Methodology About Frost & Sullivan Frost & Sullivan We Accelerate Growth

3 Background and Company Performance Industry Challenges Smaller companies comprise a sizeable portion of the North American economy. According to the latest U.S. census data, small businesses are pervasive, job creating risk takers. Unfortunately, smaller companies had to wait to begin enjoying the benefits of mobile app technology. Mobile workforce application utilization was typically limited to larger enterprises due to the solutions cost and complexity. A number of factors broke this market open to all sizes of businesses; today, the smaller business sector (which Frost & Sullivan defines as employing employees) represents a significant sales opportunity. Of course, this sector also presents unique challenges to vendors. Frost & Sullivan analysis reveals that these challenges include: 1) Finding the most effective distribution channel partners, 2) Neutralizing customer purchase barriers, and 3) Preventing customer churn-out after the sale. Finding the Most Effective Distribution Channels: Preferences regarding mobility app partners have been shifting within the SMB sector. The most recent Frost & Sullivan Mobile Business Applications survey reveals that SMBs are spreading their mobile partner preferences around evenly among systems integrators, major corporate software vendors, wireless carriers, and mobile device manufacturers. This broader array of potential mobility partners seems to indicate an increasing level of sophistication on the part of these SMBs. This dynamic changes dramatically at the very low end of the SMB spectrum, where the majority of micro-businesses (1-24 employees) see no need for a partner when selecting and implementing mobile business apps. This segment s distant second partner choice is the wireless carrier. This is most likely due to the fact that these very small businesses (VSBs) are either not opting for the apps at all - or because they are only attracted to the simplest of mobile solutions and, as a result, need little assistance. The Mobile app providers that are focused on optimizing customer value typically provide SMB prospects with a selection of potential partners, including direct-buy options (such as online application stores). Neutralizing Customer Purchase Barriers: The Frost & Sullivan survey results also surfaced the following SMB adoption barriers around mobile workforce applications: Tight budgets High-level purchase decision-makers Skepticism regarding ROI Very limited IT staff and internal expertise Frost & Sullivan We Accelerate Growth

4 On the whole, Frost & Sullivan feels that SMBs may need more convincing regarding the value-add of moving from their current manual work processes to mobile software applications. The leader in providing customer value will acknowledge these concerns and effectively respond with a well-designed set of educational resources, including relevant case studies, detailed ROI tools, Technology 101 videos, etc. These leaders will also present prospects with a clear set of application solutions and capabilities that are easy to afford, purchase, and implement. Preventing Customer Churn-Out After the Sale: Small and mid-sized businesses have limited resources, time, and patience. They demand solutions that are simple to deploy, use, and administer. If these conditions aren t quickly met, current monthly subscription pricing allows the SMB to discontinue using the product and easily churn out as a customer. Customer value leaders recognize that SMBs demand a different level of engagement. They put time and resources into providing onboarding assistance and into communicating regularly after deployment in order to quickly address any lingering implementation difficulties. Customer Impact and Business Impact Price/Performance Value ClickSoftware s StreetSmart suite of mobile worker applications is available in a cloudbased as a service format with predictable monthly per-seat subscription pricing. The company was the first to evolve a number of years ago from a static three-tier product array to a more modular set of prepackaged capabilities. Individual apps are available for $9.95 per-user per-month, while the full suite is priced at $24.95 PUPM. The vast majority of StreetSmart users opt for the full suite. The subscription pricing model not only makes this solution more affordable to smaller businesses with tighter budgets; it also allows the customer to scale the solution easily as demand dictates. Customer Purchase Experience In addition to simplifying the customer purchase experience with affordable, monthly price points and with a more modular and flexible set of capabilities to choose from, ClickSoftware is also: Defining and targeting key industries that need access to a suite of mobile worker capabilities in quick-to-implement turnkey packages. These industries include Healthcare, Distribution, Property Management, Government, Construction, and Specialty Trade. Expanding its go-to-market strategy by augmenting its traditional wireless carrier channel with select industry partners that include VARs, systems integrators, and Frost & Sullivan We Accelerate Growth

5 other major software providers. ClickSoftware is also increasingly leveraging app storefronts and e-commerce options. Deploying a selling approach that recognizes the need to first convince SMBs of the value of new mobile software technology before even attempting to convince them that ClickSoftware should be their preferred provider. Designing and maintaining a StreetSmart suite that meets the top selection criteria defined by respondents to the most recent Frost & Sullivan Mobile Enterprise Applications survey: o o For very small businesses, the main app selection criteria are affordable price points and ease of deployment/use/administration. Larger SMBs prefer solutions that are easy to scale and administer, and that provide an acceptable ROI. Frost & Sullivan points out that neither Competitors 2 and 3 are acting as strategically as ClickSoftware. For example, both remain more dependent on a single channel type the wireless carriers. Competitor 2 initially lagged on introducing modularization into its product scheme. Customer Ownership Experience Small and mid-sized businesses typically have no or very few resources to dedicate to mobile app deployments. In fact, lack of internal resources is a key adoption barrier, according to Frost & Sullivan survey respondents. Proper installation and set-up sets the stage for a solution that is simple to use and manage. ClickSoftware recognizes that a positive customer onboarding experience is key to a highquality ownership experience. A smooth start also helps to lower expensive customer churn. ClickSoftware has made a significant investment in creating an optimal onboarding experience that can be tailored to individual customer needs. The company considers this effort to be a real competitive differentiator. After a successful onboarding experience, ClickSoftware provides ongoing support in the form of best practices webinars, blogs, customer events, and live 24x7x365 technical support. The StreetSmart cloud-based apps are managed and maintained on a 24/7 basis by the app developer. This allows the customer to focus on its core business and not have to invest in hiring additional IT resources. And should the need for these apps change in intensity, subscription-based delivery allows the customer to easily add or delete users. Frost & Sullivan We Accelerate Growth

6 Although both Competitors 2 and 3 recognize the criticality of a positive onboarding experience, Frost & Sullivan feels that neither of their current efforts are as extensive as ClickSoftware s. Brand Equity ClickSoftware is a strong, well-positioned brand. The company has selectively acquired other talent and businesses as needed, adding to its brand power. It has also partnered with premier players to distribute its solutions. Frost & Sullivan recognizes ClickSoftware as a leader in the North American mobile workforce management market. Competitors 2 and 3 are still building brand equity in the North American region. Financial Performance ClickSoftware is a privately held company with over 650 employees worldwide. The company was acquired by Francisco Partners in mid-2015 in a transaction valued at approximately $438 million. Current financial performance data is unavailable. Growth Potential Frost & Sullivan expects the SMB mobile workforce software applications sector to continue to grow in North America; however, it will require special handling. In addition to the activities and tactics designed to attract new SMB customers, ClickSoftware sees significant growth potential in its current user base. It is typical for the company s current customers to try 1-2 StreetSmart components (track and trace, for example), experience positive impacts, and then expand in terms of both capabilities and number of employees as users. To encourage that expansion and growth, ClickSoftware recognizes the SMB s preference to self-investigate and provides these businesses with professional, up-to-date online resource materials (including blogs and webinars). ClickSoftware also just signed an OEM agreement that will embed its StreetSmart software into mobile devices at the point of manufacture. This will significantly increase exposure (and most likely customer uptake). The company is also thinking more broadly about its strategic mission for all sizes of businesses and is investigating how to expand beyond mobile worker management to incorporate more customer engagement opportunities. ClickSoftware clearly wants to help enrich and enable its customers efforts to satisfy THEIR end-customers. Frost & Sullivan We Accelerate Growth

7 Conclusion Mobile workforce software applications for small and mid-size businesses constitute a growth market; however, the SMB segment requires special handling in order for providers to sell both effectively and profitably. Frost & Sullivan concludes that ClickSoftware truly stands out based on the breadth of its capabilities, the affordability of its prepackaged solutions, its professional and personalized onboarding process, and its 24x7x365 live tech support. In addition to this, the company does not sit on its laurels, and continues to investigate and implement new growth strategies that place it ahead of its competitors in terms of both near- and longterm potential. With its strong overall performance, ClickSoftware has earned the 2017 Frost & Sullivan Customer Value Leadership Award. Frost & Sullivan We Accelerate Growth

8 Significance of Customer Value Leadership Ultimately, growth in any organization depends upon customers purchasing from a company and then making the decision to return time and again. Delighting customers is, therefore, the cornerstone of any successful growth strategy. To achieve these dual goals (growth and customer delight), an organization must be best-in-class in three key areas: understanding demand, nurturing the brand, and differentiating from the competition. Understanding Customer Value Leadership Customer Value Leadership is defined and measured by two macro-level categories: Customer Impact and Business Impact. These two sides work together to make customers feel both valued and confident in their products quality and long shelf life. This dual satisfaction translates into repeat purchases and a high lifetime of customer value. Frost & Sullivan We Accelerate Growth

9 Key Benchmarking Criteria For the Customer Value Leadership Award, Frost & Sullivan analysts independently evaluated two key factors Customer Impact and Business Impact according to the criteria identified below. Customer Impact Criterion 1: Price/Performance Value Criterion 2: Customer Purchase Experience Criterion 3: Customer Ownership Experience Criterion 4: Customer Service Experience Criterion 5: Brand Equity Business Impact Criterion 1: Financial Performance Criterion 2: Customer Acquisition Criterion 3: Operational Efficiency Criterion 4: Growth Potential Criterion 5: Human Capital Best Practices Award Analysis for ClickSoftware Decision Support Scorecard To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation. Ratings guidelines are illustrated below. RATINGS GUIDELINES The Decision Support Scorecard is organized by Customer Impact and Business Impact (i.e., These are the overarching categories for all 10 benchmarking criteria; the definitions for each criterion are provided beneath the scorecard.). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which confirms that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. Frost & Sullivan We Accelerate Growth

10 The results of this analysis are shown below. To remain unbiased and to protect the interests of all organizations reviewed, we have chosen to refer to the other key participants as Competitor 2 and Competitor 3. Measurement of 1 10 (1 = poor; 10 = excellent) Customer Value Leadership Customer Impact Business Impact Average Rating ClickSoftware Competitor Competitor Customer Impact Criterion 1: Price/Performance Value Requirement: Products or services offer the best value for the price, compared to similar offerings in the market. Criterion 2: Customer Purchase Experience Requirement: Customers feel they are buying the most optimal solution that addresses both their unique needs and their unique constraints. Criterion 3: Customer Ownership Experience Requirement: Customers are proud to own the company s product or service and have a positive experience throughout the life of the product or service. Criterion 4: Customer Service Experience Requirement: Customer service is accessible, fast, stress-free, and of high quality. Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty. Business Impact Criterion 1: Financial Performance Requirement: Overall financial performance is strong in terms of revenues, revenue growth, operating margin, and other key financial metrics. Criterion 2: Customer Acquisition Requirement: Customer-facing processes support the efficient and consistent acquisition of new customers, even as it enhances retention of current customers. Criterion 3: Operational Efficiency Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high quality standard. Criterion 4: Growth Potential Requirements: Customer focus strengthens brand, reinforces customer loyalty, and enhances growth potential. Frost & Sullivan We Accelerate Growth

11 Business Impact BEST PRACTICES RESEARCH Criterion 5: Human Capital Requirement: Company culture is characterized by a strong commitment to quality and customers, which in turn enhances employee morale and retention. Decision Support Matrix Once all companies have been evaluated according to the Decision Support Scorecard, analysts then position the candidates on the matrix shown below, enabling them to visualize which companies are truly breakthrough and which ones are not yet operating at best-in-class levels. High ClickSoftware Competitor 3 Competitor 2 Low Low Customer Impact High Frost & Sullivan We Accelerate Growth

12 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify Award recipient candidates from around the globe Conduct in-depth industry research Identify emerging sectors Scan multiple geographies Pipeline of candidates who potentially meet all bestpractice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline Interview thought leaders and industry practitioners Assess candidates fit with best-practice criteria Rank all candidates Matrix positioning of all candidates performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates Confirm best-practice criteria Examine eligibility of all candidates Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles Brainstorm ranking options Invite multiple perspectives on candidates performance Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders Share findings Strengthen cases for candidate eligibility Prioritize candidates Refined list of prioritized Award candidates 6 Conduct global industry review Build consensus on Award candidates eligibility Hold global team meeting to review all candidates Pressure-test fit with criteria Confirm inclusion of all eligible candidates Final list of eligible Award candidates, representing success stories worldwide 7 Perform quality check Develop official Award consideration materials Perform final performance benchmarking activities Write nominations Perform quality review High-quality, accurate, and creative presentation of nominees successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice Award recipient Review analysis with panel Build consensus Select recipient Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform Award recipient of Award recognition Present Award to the CEO Inspire the organization for continued success Celebrate the recipient s performance Announcement of Award and plan for how recipient can use the Award to enhance the brand 10 Take strategic action Upon licensing, company is able to share Award news with stakeholders and customers Coordinate media outreach Design a marketing plan Assess Award s role in future strategic planning Widespread awareness of recipient s Award status among investors, media personnel, and employees Frost & Sullivan We Accelerate Growth

13 The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360- degree research methodology provides an evaluation platform for benchmarking 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS industry participants and for identifying those performing at best-in-class levels. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages more than 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan We Accelerate Growth